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U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1999
[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________to _________________
Commission file number 333-26699
CORNERSTONE BANCSHARES, INC.
(Exact name of small business issuer as specified in its charter)
TENNESSEE 62-1173944
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5319 HIGHWAY 153
CHATTANOOGA, TENNESSEE 37343
(Address of principal executive offices)
(423) 877-8181
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 1,011,561 SHARES OF COMMON
STOCK AS OF JUNE 30, 1999.
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CORNERSTONE BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statement of Cash Flows
For the Six Months Ended June 30, 1999 and June 30, 1998
<TABLE>
<CAPTION>
1999 1998
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<S> <C> <C>
Cash flows from operating activities:
Net income (622,397) 262,308
Adjustments to reconcile net income (loss)
to net cash provided by operating actvities:
Provision for possible loan losses 655,000 123,192
Provision for depreciation and amortization 176,334 176,076
Accrued interest receivable 104,363 (274,957)
Accrued interest payable (86,952) (142,085)
Changes in other assets and liabilities: (734,809) (295,089)
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Net cash used in operating activities (508,461) (150,555)
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Cash flows from investing activities:
Purchase of investment securities: AFS (6,865,216) (5,115,349)
Purchase of investment securities: HTM -- (8,784,905)
Proceeds from security transactions: AFS 4,247,643 2,327,557
Proceeds from security transactions: HTM 1,960,754 4,929,566
Net increase in loans 6,617,367 (9,559,545)
Purchase of bank premises and equipment (81,272) (127,503)
Net cash used in investing activities 5,879,276 (16,330,179)
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Cash flows from financing activities:
Net increase in deposits (6,606,894) 16,843,967
Net increase in repurchase agreements 282,191 --
Net increase of notes payable -- --
Issuance of common stock 269,088 1,548,382
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Net cash provided by finanacing activities (6,055,615) 18,392,349
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Net increase in cash and cash equivalents (684,800) 1,911,615
Cash and cash equivalents beginning of period 12,693,967 7,303,892
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Cash and cash equivalents end of period 12,009,167 9,215,507
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</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
CORNERSTONE BANCSHARES, INC.
(Registrant)
Date: August 24, 1999
/s/ Gregory B. Jones
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President & Chief Executive Officer
Date: August 24, 1999 /s/ Nathaniel F. Hughes
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Chief Financial Officer
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